PepsiCo tops sales estimates as strong snack brands provide boost

(Reuters) - PepsiCo Inc’s (PEP.O) sales topped Wall Street forecasts in the fourth quarter, as higher demand at its snacks business that makes Doritos and Cheetos made up for a decline in sales of sugary drinks.

As consumers increasingly ditch sodas and sugary drinks, Purchase, New York-based Pepsi has sharpened its focus on snacks as well as healthier beverages.

Indeed, Pepsi rival Dr Pepper Snapple (DPS.N) agreed to merge with Keurig Green Mountain last month in a $21 billion (15.11 billion pounds) deal as a way to lower its reliance on soft drinks.

However, asked to comment on the deal by an analyst on Tuesday’s earnings call, PepsiCo Chief Executive Indra Nooyi said: “I‘m sure there is some towering strategic logic, but we are still searching for it.”